Every year we are seeing something new and exciting come out in terms of artificial intelligence & its usefulness. The use of AI in the E-commerce industry is more about learning consumer behavior. And, it is also about utilizing the data gathered for better recommendations. AI has the ability to automate all the processes. These processes are involved in buying cycle to make the whole process more efficient, systematic, and accurate. In addition to these, there are quite a few ways of using AI through which companies are able to scale their E-commerce operations. AI has been a boon to the retail and E-commerce sector.
Presence of AI in E-commerce (use cases)
AI is all about simplifying things for the consumer & simplifying manual operations involved in a business. This is achieved by:
- Sending customers buying recommendations based on their past purchases
- Offering personalized shopping experience
- Sending stores notifications about stock status to maintain an adequate amount of stock
- Voice assisted shopping experience
- Digital instant payment methods
This enhances customer experience and makes the best use of technology in a constructive way. So, AI has become a powerful tool that is helping businesses to increase their sales and helping customers to save their time. Furthermore, AI seems like a tool that can handle the ever-evolving demands and customer preferences. Which is a massive challenge for retailers. Therefore, it helps in reducing overhead costs for businesses and operational costs. According to Statista research, close to 70% of retail businesses believe that AI can help their businesses by offering customers personalized solutions.
Benefits of AI in E-commerce Companies
One of the biggest E-commerce companies ‘Amazon’ has been championing AI and its benefits for a long time. Then, the company has been relying upon machine learning to understand more about customer preferences and user experience. Then, these actions help to improve its services. Therefore, these are some of the benefits that E-commerce companies will find handy by using AI for their businesses.
Targeting marketing and advertising
Personalization is the top priority of E-commerce companies. Advancement in AI has enabled these companies to send personalized content as per the user preferences based on their purchase history and past interactions with the company. This helps companies to further understand what customer actually wants.
Helps increase customer retention
When someone sees personalized messages and choices sent to them, the chances are that they will stick with that company. McKinsey’s report on personalization outreach in customer retentions states that there is a 10-15% higher chance of customer retention and revenue uptick using personalization.
The benefit of automation is to reduce human intervention. For E-commerce companies, this means sending sales reminders, messages on special occasions (like birthday, mother’s day, women’s day, valentine’ day, etc.) to encourage people to make a buy. With the help of AI, businesses can reduce human intervention and automate processes. For example, sending discount codes, ordering stock, product recommendations, customer support (by using chatbots), etc.
Making sales process more efficient
From planning inventory to following up with customers regarding the abandoned cart, with the help of AI businesses can move customers from prospective buyers to eventual buyers with the help of reminders and chatbots to answer any queries that they might have before buying a product.
How to Implement AI in E-commerce
Automation and AI are set to redesign the entire E-commerce industry model and the broader value chain. This transition will result in the emergence of organizations with fewer layers and a better-skilled and trusted workforce backed by real-time data and analytics. It is exciting to try out new technologies for business improvement. But in order to do that, it should be ensured that the right tools are used and a basic understanding about it is there. Here are some of the ways using which businesses can implement AI in E-commerce.
Creating the right strategy
Businesses need to figure out what they want to achieve by implementing AI in their business. Once the aim is figured out then it is important to take small steps in achieving that aim instead of trying to implement and change everything at once.
Align AI usage with your business’s corporate strategy
The most successful AI implementation relies on the best use cases. Businesses have to rely and focus on revenue-generating opportunities with proven AI technologies. Negatively, in no way the new tech implementation should disrupt the business.
Use third-party expertise or outsource built & implementation
Not all businesses will have an in-house team that can help businesses transform into using AI efficiently for their growth. It is advisable to find a third party with AI expertise to build and implement AI as per the business needs.
Future View for Automation and AI in E-commerce
It’s not just about using technology to re-imagine workflows and business models, but to propel your business to a future state of customer service (beyond support) and efficiency that doesn’t exist today. Businesses across industries are investing and banking heavily on AI and related technologies. Large firms are shifting focus to developing AI capabilities and changing business strategy accordingly.
Business Automation is ever-changing the means through which a company operates. Systems, methods, workflow, and production are all assessed & modified to be more robust. It is important for business growth – it provides businesses a chance to “untie even a lot of potential” by reaching new customers with the smallest operational overhead, rising from finance, marketing & giving better client service. Business automation through Digital transformation has opened the door for increased transparency and opportunities for collaboration across teams in E-commerce.
When everyone has access to useful information, it becomes easier to work toward goals and people tend to feel like their actions matter. Increased productivity and efficiency, along with the ease and transparency provided by tools that you can make available to your clients, will improve the overall team and customer experience while shopping online.